Vietnam Digest: SCIC targets selloff in 134 firms; Flag carrier to move listing to HoSE

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The State Capital Investment Corporation (SCIC) will offload stakes in 134 enterprises in 2018-2020 while national flag carrier Vietnam Airlines will move its listing from Unlisted Public Company Market (UPCoM) to Ho Chi Minh City Stock Exchange (HoSE).

Deal Street Asia reported, SCIC will offload stakes in 134 public enterprises in 2018-2020

The State Capital Investment Corporation (SCIC), Vietnam’s sovereign fund, said it would step up state capital divestment to cover a total of 134 enterprises during the 2018-2020 period. It will, however, continue to hold its interest in two enterprises – technology major FPT Telecom and its subsidiary SCIC Investment Company, local media reported.

According to a detailed divestment plan, the sovereign fund aims to offload capital in 121 businesses this year. It plans to offload its stakes at Tien Phong Plastic Joint Stock Company, FPT Joint Stock Company and Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) again this year after its failed attempt in 2017.

The companies in the thermal power sector will also be part of SCIC’s divestment plan. These include Quang Ninh Thermo-power Joint Stock Company and Hai Phong Thermo-power Joint Stock Company. Other major names in the divestment list include Domesco Medical Import-Export JSC, Bao Viet Group, Thang Long Corporation and Vietnam Vegetable Oil Industry Corporation.

Vietnam Dairy Product JSC (Vinamilk) and Vietnam Military JSC (MB Bank) and Hau Giang Pharmaceutical JSC, however, are not among companies that the state is looking to divest this year.

SCIC earlier successfully sold 29.52 per cent stake in Binh Minh plastic JSC to Thailand’s Nawaplastic Industries to earn VND2.33 trillion ($103 million). Nawaplastic Industries increased its shares to 51 per cent of total capital at the plastic firm. Vietnam Airlines’ shares to be listed on HoSE National flag carrier Vietnam Airlines (HVN)’s shareholders have approved a plan to move its shares from UPCoM to Ho Chi Minh City Stock Exchange (HoSE). At the annual shareholders’ meeting May 10, the airline announced that the plan to move from UPCoM to HoSE will be conducted after the completion of the sale of 191 million shares to current shareholders.

The state-owned airline earlier announced plan to issue more than 191 million shares at VND10,000 ($0.4) apiece to current shareholders with the aim of increasing its charter capital.

“The State currently owns 86.2 per cent stake of Vietnam Airlines and we are carrying out procedures to offer for sale 57.9 million shares to existing shareholders. The national carrier will also list its shares on the benchmark stock exchange in Ho Chi Minh City (HoSE) in the second quarter of this year,” CEO of Vietnam Airlines Duong Tri Thanh told local media.

By Quynh Nguyen

Vietnam ministry proposes restricting hours of alcohol sale

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People drink beer in Vietnam. Photo: Tuoi Tre

Vietnam’s Ministry of Health is collecting feedback on the proposal to prohibit the sale of alcohol during specific time of the day, which is aimed at minimizing the negative effects of alcoholic beverages on the society.

In its draft law on preventing harmful effects of alcohol abuse, the health ministry highlights three possible scenarios for limiting the sale of alcoholic drinks during certain hours.

The first solution seeks to recommend that alcohol only be sold from 11:00 am to 2:00 pm and from 5:00 pm to 10:00 pm on a daily basis. This rule does not apply to international terminals at local airports and in areas specializing in cuisine, entertainment, and tourism.

The second approach suggests that the sale of alcoholic beverages must only be allowed between 6:00 am and 10:00 pm every day. This regulation is not applicable to areas specializing in cuisine, entertainment, and tourism.

The third recommendation shows that authorities in each city and provinces decide their own ban periods.

The tentative law is expected to be presented to the law- making National Assembly in late 2018 and whether is it approved or not will be decided in early 2019.

According to Tran Thi Trang, deputy head of the legal division of the Ministry of Health, it took over ten years for the draft law to be established.

During such period, beer consumption in Vietnam has increased from 2.7 billion liters to four billion liters a year, Trang elaborated.

The medical cost for treatment of health conditions brought about by excessive drinking has also skyrocketed over the past decade, the official added.

Such rules have been implemented in many countries across the world, said Nguyen Huy Quang, head of the health ministry’s legal division.

“In Thailand, the ban of alcohol sale is applied during certain hours of the day, as well as on election dates,” Quang explained.

“A committee that manages the consumption of alcohol is established at each of the country’s provinces and cities.

“Thanks to the efforts, death toll caused by excessive drinking has been significantly reduced.”

If the law is passed, only sellers, rather than buyers, will be fined if the break the rules, Trang said, adding that the sale will be monitored via the stores’ system or surveillance camera footage.

Taxes on alcohol are at about 40 percent in Vietnam, which is much lower compared to other nations, she added.

In order to mitigate the negative effects of excessive alcohol consumption, authorities must implement assertive measures, the official stated.

By Duy Khang, Source: Tuoi Tre News

Young Vietnamese pop singer sets record for scoring 1 million YouTube views in 18 minutes

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Young pop star Son Tung M-TP has set a new record among Vietnamese artists for having his latest YouTube video hit the one-million-view mark less than 20 minutes after being uploaded on YouTube on Saturday.

The music video, titled Chay ngay di, or “Run now”, was uploaded on the world’s biggest video-sharing site at 12:00 am, and quickly fielded one million views at 12:18 am.

The 4 minute and 33 second video has become the YouTube music video by a Vietnamese artist that reached the one million view mark in the shortest time.

Son Tung M-TP, 24, is well-known among Vietnamese youth for an abundance of hit songs.

More than 10.1 million followers on his verified Facebook account had been notified of the launch of the latest music video beforehand.

At the time of writing, Chay ngay di has racked up more than 12 million views on YouTube, 16 hours since being uploaded.

The success of the music video is comparable to those of K-pop artists from South Korea.

Vietnamese fans are eager to see if the video could smash the record currently held by K-pop boy band BTS, whose music video titled DNA passed 20.9 million views within 24 hours since its upload on YouTube.

As of 4:15 pm on May 12, the video has received more than 12 million views.

Chay ngay di is a hip-hop mixed with R&B song composed by Son Tung M-TP himself.

The music video features the singer as a handsome, affluent man, who always looks for true love but ends up meeting a beautiful girl, who wants nothing but his money.

The man was so badly hurt that he even wanted to kill the girl, but stopped just in time and told her to “run now”.

“While I was composing the song, I imagined the story in my head. I dedicate this music video to the audience for better understanding about my compositions,” the young singer have shared before the video launch.

On his official YouTube channel, with more than 2.4 million subscribers, Tung also has a number of hit videos, three of which have passed the 130-million-view mark.

By Bao Anh, Source: Tuoi Tre News

Over 80,000 expats working in Vietnam

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Vietnam is now home to more than 80,000 skilled foreign workers, according to Le Quang Trung, deputy head of the Department of Employment under the Ministry of Labour, Invalids and Social Affairs (MOLISA).

According to a report by Vietnam News, they come from over 100 countries and territories and work as managers, managing directors, experts and technical workers, among other professions, Trung said at a meeting on employment hosted by the ministry in the southern province of Binh Duong on Thursday.

As much as 95 per cent of eligible foreign workers in Vietnam have been granted work permits, he said, adding that they provide a significant contingent of skilled, experienced and professional workers for Vietnam.

However, he noted that there is a lack of close, timely and comprehensive coordination in managing foreign labourers among local authorised agencies, while violations have not been strictly handled.

The sense of law observance of some contractors, businesses and foreign workers in recruiting, employing labourers and following work permit regulations remains limited. He noted that some foreigners do enter Việt Nam before applying for work permits.

The increasing number of foreign workers in Vietnam requires subsequent improvements in the legal system to ensure the rights of migrant workers, especially with regard to social security.

Social insurance authorities in the country have developed a compulsory social insurance scheme for foreign workers in Vietnam, citing the need to follow international practices as the country deepens its integration into the global community.

The 2014 Law on Social Insurance requires compulsory enrollment of foreign workers in the social insurance scheme, starting in 2018, to ensure their welfare. However, this has not yet been realised due to a lack of guiding documents.

A MoLISA draft decree also proposed that foreign workers be required to take part in all five social insurance programmes including pensions and insurance for sickness, maternity, and cover for injuries, disease, or death in the workplace

Source: VNS

Vietnam, China to expand cross-border self-drive tours

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Vietnam and China have announced plans to expand cross-border self-driving tours to boost tourism in the two countries.

Xinhua reports, in June 2018, China and Vietnam will launch cross-border self-driving routes from the southern Chinese cities of Guilin and Fangchenggang, to Mong Cai and Ha Long City in Vietnam.

The original self-driving route was launched between Fangchenggang and Mong Cai in November 2016. Vietnam has allowed the northern Quang Ninh province to pilot self-drive tours from China to Ha Long city since March.

Self-driving tours through the Vietnam-China border have become popular after the launch of the Fangchenggang to Mong Cai route. The number of outbound tourists from Fangchenggang rose to more than 3.1 million in 2017.

78-year-old Vietnamese child molester has sentence halved at appeal court

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The man, previously given a three-year imprisonment, was sentenced to 18 months on probation by an appeal court

According to a report by Tuoi Tre newspaper, a1940-born Vietnamese man who was last November handed a jail term of three years for lewd acts against two preteen girls had his sentence reduced to 18 months on probation at a court of appeals on Friday.

Nguyen Khac Thuy, 78, who lives in the southern province of Ba Ria – Vung Tau, Vietnam was charged with committing lewd acts on two girls, aged six and 11, in separate cases in April and May 2014, according to court documents.

Nguyen Khac Thuy is seen at an appeal court in Ba Ria – Vung Tau Province, southern Vietnam, on May 11, 2018. Photo: Tuoi Tre

In the first case, the elderly man touched the sensitive parts of the six-year-old girl and was later scolded and hit in the face by the victim’s father.

In the second incident, the victim was talking with a friend in her apartment when Thuy appeared and put his hand through the door to commit lewd acts on her.

Thuy pleaded not guilty to both charges of child molestation, but the court of Vung Tau City in November 2017 declared his appeal inadmissible, ruling that there was sufficient evidence to charge him.

The court then sentenced him to three years behind bars.

On Friday, however, an appeal court in Ba Ria – Vung Tau ruled that there was not enough evidence to charge him for the second incident, involving the 11-year-old girl, and found Thuy guilty in the first case only.

Nguyen Khac Thuy, 78, facing to judicial panels

The court therefore reduced the jail term to 18 months and allowed him to serve the sentence on probation instead of in prison.

Huynh Ngoc Thien, the president of appeal court, who chaired the judicial panels.

Ba Ria – Vung Tau police had previously demanded that that the 78-year-old be charged for molesting as many as four preteen girls.

by Tuan Son

Restaurant owner in Saigon jailed for overcharging Australian diner $30,000

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The owner had his staff swipe the customer’s credit cards multiple times.

HCM City People’s Court on Friday sentenced a restaurant owner to seven years in jail for misappropriating more than VND683 million (US$31,100) from an Australian client. Tran Tuan Minh, 23, of southern Ben Tre province is the director of NighFall Restaurant Ltd Company in District 1.

On August 11, 2016, Australian national Caracciolo David John, 45, and a group of friends visited Minh’s restaurant, had dinner and played bar billiards. John used two cards – a Visa and a Master – from two Australian banks to pay the bill, which came up to VND23 million (nearly $1,000). However, several days later, after returning to Australia, John discovered that AU$39,429 (VNĐ683 million/US$31,100) had been withdrawn from his accounts. Minh got his staff to swipe the cards 10 times and withdraw more money than John’s bill amount.

The bank receipt shows that the Nightfall restaurant staff swiped the victim’s cards eight times and withdrew VND683 million. – Photo vietnamplus.vn

Minh also forged the signature of the card holder to withdraw money at a bank the following day. At the court, Minh admitted that he misappropriated the money because his business suffered difficulties. The misappropriated money was hidden in his motorbike’s trunk. His family mortgaged its house to compensate for the fraud.

SE Asian stocks rise in line with broader Asia; Vietnam Index gains 1.6%

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Southeast Asian stock markets closed higher on Friday, in line with broader Asia, as investor risk appetite got a boost after softer US inflation data soothed worries of faster rate hikes by the Federal Reserve.

According to Reuters report, the US consumer prices rose less than expected in April, suggesting that inflation was increasing at a moderate pace.

“The rally in regional markets reflects the US markets performance last night after the inflation data eased concerns of a possible Fed tightening moving forward,” said Lexter Azurin, a senior equity analyst at Manila-based AB Capital Securities.

Asia shares ex-Japan rose nearly 1%, with investors also cheering US-North Korean steps to further ease tensions in the Korean Peninsula.

In Southeast Asia, Philippine shares closed 2.4% higher, a day after the central bank hiked the benchmark interest rates to 3.25%.

Financials and industrials were among the top boosts with power generator Aboitiz Equity ventures rising 6% and BDO Unibank ending 3.3% higher.

“Most analysts were citing that recent inflation figures have in a way signalled that the BSP (Bangko Sentral ng Pilipinas) might be behind the curve, so it was viewed positively by the markets today,” Azurin said.

Philippine shares gained 2.7% this week, the most since April 2017.

Vietnam stocks erased early falls to close 1.6% higher, while Malaysia was closed for a public holiday after general elections.

Indonesian stocks jumped nearly 2% in intraday trading before closing 0.8% higher.

Mining contractor United Tractors gained 7%, while Bank Negara Indonesia climbed 2.8%.

Bank Indonesia said the rupiah’s level was not reflecting fundamentals and that it had ample room to adjust the rate, giving another hint that it might raise rates to support the currency.

Singapore shares ended nearly 1% higher, with DBS Group Holdings rising 2.2% and United Overseas Bank up 2.3%.

Data out on Friday showed that the city-state’s retail sales in March fell 1.5% from a year earlier, as sales of motor vehicles as well as computer and telecommunications equipment dropped.

The United States to help Vietnam combat wildlife crime

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The United States Agency for International Development (USAID) and the Ministry of Agriculture and Rural Development (MARD) on Friday officially launched the USAID Saving Species project.

U.S. Ambassador Daniel J. Kritenbrink, Permanent Deputy Minister of MARD Dr. Ha Cong Tuan, representatives of the MARD Convention on International Trade in Endangered Species Management Authority of Vietnam, and other government and NGO stakeholders attended the launch. A report by Dan Tri international version mentioned.

“USAID Saving Species is not just a commitment between the U.S. and Vietnamese governments, it will also link to the efforts of other organizations, within Vietnam and beyond, who are committed to combating wildlife trafficking. Only by working together can we solve this global issue,” said Ambassador Kritenbrink.

With a budget of approximately USD10 million, USAID Saving Species supports the Government of Vietnam to combat wildlife trafficking through three integrated and mutually reinforcing objectives: harmonizing and improving the legal framework for wildlife crime; strengthening and improving law enforcement and prosecution of wildlife crime; and reducing consumer demand for illegal wildlife products.

The project’s focal species are rhinos, elephants, and pangolins, and targeted geographic locations include major cities such as Hanoi, Ho Chi Minh City, and Danang, as well as transit points for the illegal trade, such as border crossings, ports, and airports.

UOB, first Singaporean bank to debut in Vietnam

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Singapore-based United Overseas Bank (UOB) will open its first branch in Vietnam on July 2. It is the ninth wholly foreign-owned bank and first Singaporean bank in the country.

According to a report by Vietnam News Agency, UOB Vietnam has a charter capital of VNĐ3 trillion (US$131.3 million) and has permission to operate in Vietnam for 99 years.

On March 23 last year, State Bank of Vietnam (SBV) announced that it had given preliminary approval to UOB to set up a branch in Việt Nam during a visit of Singaporean Prime Minister Lee Hsien Loong to the country. The bank received the in-principle licence in July last year.

Under the licence, the bank can expand its network in the country, enabling UOB to extend financial support and offer best-in-class products and services to consumers and businesses beyond HCM City.

UOB was founded in 1935. Since then, the bank has developed a global network of more than 500 offices in 19 countries in Asia Pacific, Europe and North America.

In 2013, UOB set up the FDI Advisory Unit in Việt Nam, its ninth unit in the region, to offer integrated services to its clients expanding their businesses within the country and across borders.

UOB has also been promoting Việt Nam as an investment destination, supporting its regional clients venturing into and expanding within the country.

In 2015, UOB signed a Memorandum of Understanding with Vietnam’s Foreign Investment Agency to facilitate trade and investment between Việt Nam and Southeast Asia.

Apart from UOB Vietnam, eight other foreign banks operating in the country are HSBC (Hong Kong), ANZ (Australia), Standard Chartered (United Kingdom), Shinhan Vietnam (South Korea), Hong Leong Bank, CIMB and Public Bank Berhad (Malaysia) and CitiBank (United States).

SMEs say foreign retailers control distribution channels

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Vietnamese manufacturers are having difficulties in distributing their products as foreign retailers control modern distribution channels.

Many businesspeople say that it is becoming more difficult to bring their goods to large supermarkets for sale.

Nguyen Thanh Hung from Hung Tan Farm Produce said he has to go through many stages to have his products displayed on supermarket shelves.

As the procedures are time-consuming, it takes five to seven days on average for farm produce to be available at supermarkets.

Meanwhile, supermarkets are ordering goods in small quantities each time, so the company has to pay more for transportation fees.

Other businesses complain that as supermarkets defer payment for goods, they do not have capital to maintain production.

“Supermarkets promise to make payments within 30 days, but they often deliberately delay the payment. I know many small businesses don’t have money for re-investment,” a businessman said.

He said that supermarkets require discount rates of 23-25 percent.
“Because of this reason, I have postponed my plan to enter supermarkets for two years,” he complained.

Nguyen Vinh Phu, former chair of the Hanoi Supermarket Association, confirmed that in Vietnam products have to go through many intermediaries before reaching consumers.

As a result, manufacturers make modest profits and consumers have to buy goods at unreasonably high prices, while retailers and intermediaries enjoy the biggest profits in supply chains.

“I have enough evidence to prove that some retailers are blocking suppliers by many kinds of charges and fees. This will discourage suppliers and manufacturers, and will kill domestic production,” Phu said.

The problem, according to Phu, is that foreign retailers are dominating modern retail channels.

Foreign retailers have been flocking to Vietnam in recent years. With advantages in capital, technology and business experience, they are keeping the upper hand over domestic ones.

Analysts estimate that modern retail channels (supermarkets, convenience stores and minimarts) make up 50 percent of total sales. This means that those who control the retail channels will have big power and a decisive voice in supply activities.

In other words, they have the power to set quality standards, distribution conditions and discount rates, and decide which products they will sell.

The director of a seafood company confirmed that Vietnamese manufacturers now depend on modern distribution channels, so they have to accept the requirements set by retailers.

“We have fallen into a dilemma. If we enter supermarkets, we will have to pay too many expenses which eat into our profits. But if we don’t, we will miss an important distribution channel,” he said.

Source: VNN

Miniso and Mumuso flogging Chinese goods in Vietnam?

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Not including Vietnamese labels and selling Chinese goods under Korean and Japanese brands are the newest scandals erupting from several stores of Korea-based Mumuso, Japan-based Miniso, and Daiso in Vietnam.

Korean media has just expressed suspicion that Mumuso stores are falsely assuming Korean origins because its headquarters is located in China. Furthermore, in Korea Mumuso is completely unheard of and has no retail stores.

According to newswire laodong.vn, many Mumuso stores in Hanoi are offering products labeled “Mumuso–Korea” but are of Chinese origins. In addition, a representative of Mumuso also mentioned that the company imports goods from a third party, meaning that good go from Korea to China and then to Vietnam.

To clarify this issue, VIR contacted Mumuso Vietnam and were told that the company will organise a press conference “at the nearest time” to clear up queries.

Not only Mumuso, but many other retail brands, including Miniso and Daiso were caught up in this scandal.

In particular, despite describing itself as a Japanese retailer giant, Miniso only has four stores in Japan, but 1,100 stores in China.

A source of laodong.vn also stated that despite setting foot in Vietnam in September 2016, Miniso’s products are not labelled in Vietnamese and do not carry Conformity to Regulation (CR) stamps in accordance with Vietnamese regulations, making consumers worried about the quality and the ingredients of the goods.

Thuy Chi (Cau Giay district, Hanoi), a Miniso buyer, said: “Many products at Miniso have no Vietnamese labels, which makes it difficult to understand their uses, and I have to ask the salesclerks for help before purchasing.”

Similar to Mumuso, Miniso’s representative also declined to comment to VIR, saying the company will provide official answers as soon as possible.

According to the Hanoi Market Management Department, all import goods have to be labelled in Vietnamese, including the name of the importer, the product, instruction manuals, and ingredients. If distributors do not label their imported goods in Vietnamese, they will be punished in accordance with Vietnamese regulations.

By: Van Anh (VIR)

Vietnam’s health ministry proposes higher tobacco tax to reduce smoking among youth

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Vietnam is one of the cheapest countries in Asia Pacific to buy a pack of cigarettes.
Vietnam’s Ministry of Health has proposed a higher fixed tax rate on cigarettes in the hope of reducing the numbers of adolescence smokers, from a proposed VND1,000 to VND2,000-5,000.

During a workshop on Tobacco Taxation organized by Oxfam on May 8, Deputy Director of the Tobacco Control Fund Phan Thi Hai said that a higher tax rate will increase government funds. “It will also prevent adolescents and poor people from purchasing more cigarettes.”

The idea follows a proposal by the Ministry of Finance proposed that offered two options for taxing tobacco in the amended Tax Administration Law.

The first option would be a combination of a special consumption percentage tax and a fixed tax. So a 20-pack of cigarettes would cost an additional VND1,000 (4.40 cents) in fixed tax, and each cigar VND1,500.

Option two is increasing the special consumption tax each year until it reaches up to 85 percent in 2021.

Health officials are supporting the first option, but said the fixed tax should be VND2,000-5,000.

Special consumption tax on tobacco in Vietnam is calculated on the warehouse price, which is roughly 35 percent of the retail price, compared to the world’s average rate of 59 percent, according to World Health Organization statistics from 2017. It is also much lower than Thailand’s 75 percent, Brunei’s 81 percent and Malaysia’s 57 percent. This has made Vietnam one of the cheapest countries in Asia Pacific to buy cigarettes.

There are 16 million smokers in Vietnam, while there are 33 million non-smokers who inhale secondary smoke at home. Tobacco smoke contains more than 7,000 chemicals. Cigarettes cause 25 types of diseases, such as cancer and cardiovascular diseases. About 100 million people worldwide were killed by tobacco-related diseases in the 20th century. Each year, tobacco causes nearly six million deaths, and that could rise to eight million in 2020.

By: Nam Phuong (Vnexpress)

Should Australia join ASEAN? Lessons from Vietnam

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The accession of Vietnam, a formerly antagonistic communist neighbour, to ASEAN was the result of several major geostrategic power shifts that continue to impact on the grouping’s development today.

Conflict in Vietnam in the 1960s and 70s provided the context for the genesis of ASEAN. Despite the hard feelings original member states held towards each other during the period of decolonisation and Cold War tension, Thailand, Indonesia, Malaysia, Singapore and the Philippines agreed to work together to shield themselves from the domino effect of communist expansion. ASEAN’s diplomatic response to Vietnam’s 1978 intervention in Cambodia remains the organisation’s biggest success.

The threat of communism brought together a group of dissimilar interests and provided a reason for ASEAN to unite. When it subsided in the 1990s, Vietnam’s regional integration became a necessity and the former adversary acceded to ASEAN in 1995. This marked one of the most meaningful transitions in the region’s history — Southeast Asia had embraced its political and ideological diversity and overcome Cold War bipolarity.

ASEAN was a critical platform for Vietnam to break out from its diplomatic isolation, re-engage with its neighbourhood and indirectly move towards normalising its relationship with the United States. Vietnam’s accession to ASEAN entailed an adjustment in the original members’ strategic thinking and additional considerations of ASEAN’s economic goals. Post-war Vietnam was significantly less developed than the ‘ASEAN 6’. It was grouped into the ‘second tier ASEAN’ group alongside newcomers Cambodia, Laos and Myanmar for which separate arrangements were made in regards to economic integration.

Vietnam’s successful transformation from an external threat into a fellow member state can be seen as the best example of a member state adopting ASEAN principles. Vietnam is now one of the most active members of the organisation. Under the pressure generated by rivalry between the United States and China, Hanoi has been consistent in insisting that ASEAN play a role in dispute management.

Vietnam has also vocally supported multilateral ASEAN initiatives, such as the ASEAN Regional Forum, to uphold the rules-based order and stability of the region. The continuity of Vietnam’s domestic leadership, alongside Singapore, means that its ruling elites still maintain the original vision held by the founders of ASEAN. Unlike Southeast Asian democracies such as Indonesia, the Philippines and Thailand (which have experienced power transitions that somewhat undermined their commitment to ASEAN), Vietnam’s outlook on the strategic importance of the group has remained consistent.

Vietnam’s accession has been a mutually beneficial process: ASEAN was the bridge to Vietnam’s liberalisation and connection with the world when the United States was still isolating it from global opportunities. Likewise, the inclusion of Indochinese states reinvented ASEAN into a regional grouping that included maritime and mainland Southeast Asia.

For half a century the region has shaped ASEAN as an institution while ASEAN has framed the conduct of regional politics. After decades of expansion, however, ASEAN is struggling to adjust to new shifts in power, particularly the rise of China. The organisation also suffers from a need to reform itself internally.

Increasing influence by China on individual member states has led to the abuse of ASEAN norms, including the principle of consensus. Growing frustration about this ineffective practice has led to internal discussion about the possibility of a new ‘ASEAN–X’ approach, where issues are resolved among those that are willing or are directly concerned with the problem at hand. While this idea is still in the making, it signals that the innate diversity and different priorities within ASEAN make it increasingly hard to reach ‘consensus’. The pending membership application of Timor Leste, if successful, will only lead ASEAN towards even deeper heterogeneity.

Timor Leste’s pending membership may only further strain ASEAN unity. But it does offer a useful case-study for those who also contemplate joining. This takes the edge off one of the oldest arguments against Australia’s joining ASEAN: that it differs too much from the group. While Australia’s difference is indisputable, that is not the main show-stopper.

The main obstacle to Australian membership is not related to how unified ASEAN is but rather the lack of ASEAN leadership. Before the membership debate, Canberra should ask if it has a vision of the leadership it can offer to ASEAN and what sort of leadership it is willing to follow.

The strategic considerations for Australia to join ASEAN differ from those that were imperative for Vietnam or the Indochinese members in the post-Cold War context. Joining ASEAN is optional for Canberra, and the rationale for Australia to consider joining the club is to better position itself in a region with a stronger China. But whether belonging to the ASEAN group can shield Australia from a more omnipresent China is an open question.

Even so, this debate is an opportunity for Australia to lever existing ASEAN platforms such as the East Asia Summit and ASEAN Regional Forum to assert its status as the oldest and closest ASEAN dialogue partner. Unlike other key major dialogue partners whose current political contexts have shifted their immediate focus away from ASEAN (such as the United States, China, Russia, India, Japan and the EU), Australia is in the position to demonstrate support for this regional institution.

Vietnam’s ASEAN success story should give Australia a reference point that ASEAN is able to adjust geopolitical needs. ASEAN membership does not necessarily give more leverage. It is a question of what Canberra wants from ASEAN and whether it has really made most of the existing frameworks of dialogue and strategic partnership.

By  Huong Le Thu –  senior analyst at Australia Strategic Policy Institute.

Source: East Asia Forum

Blockchain Festival Vietnam agenda & speakers announced for May 24-25

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Huobi.Pro, the world’s fourth largest digital asset exchange, announced today the agenda and speakers for the 2018 Blockchain Festival in Ho Chi Minh City, Vietnam on May 24-25.

Hosted by Huobi.Pro, the two-day Blockchain Festival will feature more than 30 speakers, including keynotes from Le Ngoc Giang (Ministry of Justice of Vietnam The Road Ahead for Vietnam Blockchain Industry) and Dr. David Nguyen (President of Vietnam Chamber of Commerce Singapore, Chairman of Regulus Investment & Capital Holdings).

Dr. Nguyen said, “Vietnam is becoming more and more important on the global blockchain map. As such, Vietnam needs more help from global leaders in the blockchain industry, like Huobi. We are grateful to Huobi for organizing ‘Blockchain Festival Vietnam’, which represents an important milestone for Vietnam’s blockchain development. We hope that this festival will help to increase the awareness level to the public including the ICT businesses, students, and universities.”

Attendees of Huobi.Pro’s Blockchain Festival Vietnam will have the chance to meet blockchain industry leaders such as Loi Luu (Founder of Kyber Network), Larry Liu (Founder of Genaro Network), Li Pu (Chief Technology Officer of Achain), Mikhail Mironov (Head of Partnership at ICORating) and more.

Fueled by a young population with a high rate of smartphone usage and large batches of IT graduates each year, Vietnam has become one of the fastest growing economies. In Southeast Asia, Vietnam has been dubbed “the blockchain country to watch” because of the country’s high-tech literacy and engineering resources. According to the World Economic Forum, Vietnam has ranked among the top 10 countries for producing engineering talent.

“Huobi organized the Blockchain Festival in Vietnam to bring industry knowledge, insight, and experts to one of the fastest growing markets in the blockchain and crypto landscape,” said Wu Xing, Senior Director of Huobi.Pro. “There has been a surge in demand from the Vietnamese market and we hope that by opening up new opportunities here, we can have a positive impact on both the local economy and ecosystem.“

The Blockchain Festival’s 1,500+ attendees will descend upon the Gem Center, Vietnam’s premier event venue with 10,000 square meters of conference and exhibition space. To view the full agenda, please visit https://www.blockchainfestival.com/.

To purchase tickets to Blockchain Festival Vietnam, please visit: https://ticketbox.vn/event/blockchain-festival-vietnam-70644/46909

Source: Irish Tech News

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